__p What better way to look forward in anticipated hope and eager optimism, as plans to liberalize the Indian economy in the year ahead finally take a fuller shape.
p____p The Prime Minister’s recent announcement of scrapping the controversial Press Note 18 in order to promote joint ventures with foreign partners is an interesting development. This should definitely come as a shot in the arm to those seeking to infuse their business with increased efficacy.
p____p The Press Note 18 was an impediment to foreign investors wanting to set up any collaboration in India. According to the rule, to comply with the rules, it was necessary for investors to obtain prior approval of the government if interested parties wished to invest in India, in the same or similar business activity.
p____p The doing away of Press Note 18 may also initiate the process of rationalizing indirect tax structures with a positive movement toward the long impending VAT system and a common goods and services tax system.
p____p Apart from freeing the Press Note 18, the government has also made significant changes with liberalization in the FDI regime with retrospective effect. While attempting to step up the rate of investment, the government will also be seen negotiating the Free Trade Agreements with Singapore and Asean. This too may well set a new trend and improve the foreign investment climate in India while avowing the agenda of attracting greater FDI inflows.
p____p A special mention to CII for its efforts in persevering the cause of bringing the act of FDI into India to fruition.
p____p Taking a cue from the auto industry, the IT trade could emerge a fair playing field with better organizational skills and management. Further on we could also expect competitive markets to emerge as restrictions on FDI reduce, in addition to lowered import tariffs, while helping to streamline the system for starting new businesses and conducting mergers and acquisitions.p__